FBAA calls on ASIC to extend bank branch manager investigations

The Finance Brokers Association of Australia (FBAA) has called on ASIC to extend their power to investigate bank branch managers over lending issues, following the regulators move to target branch managers over dodgy deals done by their financial planners.

According to a report in Fairfax press yesterday, ASIC “will argue in its second round submission to the financial system inquiry that it should be able to target bank staff to change cultures to better protect customers”.

FBAA chief executive officer Peter White says given the scrutiny brokers are under to comply with the NCCP, it’s only fair that bank employees are treated the same.

“There needs to be a level playing field because at this stage it seems like only brokers are being targeted by ASIC.”

He said many members have expressed concerns about the tactics used by branch managers at banks.

“It makes sense that if the regulator is already looking at the operations of branch managers in terms of financial planning activities, this be extended to include credit and lending activities.”

Mr White said the NCCP was created to protect customers, and they should be afforded the same level of protection if they choose to use a finance broker or go to a bank directly.